Colonial pays cash for structured settlements!

Idaho statues regarding Structured Settlements. This state statute overseeing the sale of structured settlement payments and the buying of annuities is basically the Model Act and complies with Federal Law (Colonial's interpretation) IDAHO CODE TITLE 28. COMMERCIAL TRANSACTIONS CHAPTER 9. SECURED TRANSACTIONS Part 1. General Provisions Current through the 2001 Cumulative Supplement (1st Regular Session of the 56th Legislature)

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(B)(i) Definitions. For purposes of this subsection:

     1. "annuity issuer" means an insurer that has issued a contract to fund periodic payments under a structured
settlement;

     2. "dependents" include a payee's spouse and minor children and all other persons for whom the payee is
legally obligated to provide support, including alimony;

     3. "discounted present value" means the present value of future payments determined by discounting such
payments to the present using the most recently published applicable federal rate for determining the present
value of an annuity, as issued by the United States internal revenue service;

      4. "gross advance amount" means the sum payable to the payee or for the payee's account as consideration
for a transfer of structured settlement payment rights before any reductions for transfer expenses or other
deductions to be made from such consideration;

     5. "independent professional advice" means advice of an attorney, certified public accountant, actuary or
other licensed professional adviser;

     6. "interested parties" means, with respect to any structured settlement, the payee, any beneficiary irrevocably
designated under the annuity contract to receive payments following the payee's death, the annuity issuer, the
structured settlement obligor, and any other party that has continuing rights or obligations under such structured
settlement;

     7. "net advance amount" means the gross advance amount less the aggregate amount of the actual and
estimated transfer expenses required to be disclosed under paragraph (B)(ii)5. of this subsection;

     8. "payee" means an individual who is receiving tax free payments under a structured settlement and proposes
to make a transfer of payment rights thereunder;

     9. "periodic payments" includes both recurring payments and scheduled future lump sum payments;

     10. "qualified assignment agreement" means an agreement providing for a qualified assignment within the
meaning of 26 U.S.C. section 130, as amended from time to time;

      11. "settled claim" means the original tort claim resolved by a structured settlement;

     12. "structured settlement" means an arrangement for periodic payment of damages for personal injuries or
sickness established by settlement or judgment in resolution of a tort claim;

     13. "structured settlement agreement" means the agreement, judgment, stipulation, or release embodying the
terms of a structured settlement;

     14. "structured settlement obligor" means, with respect to any structured settlement, the party that has the
continuing obligation to make periodic payments to the payee under a structured settlement agreement or a
qualified assignment agreement;

     15. "structured settlement payment rights" means rights to receive periodic payments under a structured
settlement, whether from the structured settlement obligor or the annuity issuer, where:

          A. the payee is domiciled in, or the domicile or principal place of business of the structured settlement
obligor or the annuity issuer is located in, this state; or

          B. the structured settlement agreement was approved by a court in this state; or

          C. the structured settlement agreement is expressly governed by the laws of this state;

     16. "terms of the structured settlement" include, with respect to any structured settlement, the terms of the
structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or
other approval of any court or other government authority that authorized or approved such structured
settlement;

     17. "transfer" means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of
structured settlement payment rights made by a payee for consideration; provided that the term "transfer" does
not include the creation or perfection of a security interest in structured settlement payment rights under a blanket
security agreement entered into with an insured depository institution, in the absence of any action to redirect the
structured settlement payments to such insured depository institution, or an agent or successor in interest thereof,
or otherwise to enforce such blanket security interest against the structured settlement payment rights;

     18. "transfer agreement" means the agreement providing for a transfer of structured settlement payment rights;

     19. "transfer expenses" means all expenses of a transfer that are required under the transfer agreement to be
paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees,
attorney's fees, escrow fees, lien recordation fees, judgment and lien search fees, finder's fees, commissions,
and other payments to a broker or other intermediary; "transfer expenses" do not include preexisting obligations
of the payee payable for the payee's account from the proceeds of a transfer;

     20. "transferee" means a party acquiring or proposing to acquire structured settlement payment rights through
a transfer.

(ii) Required disclosures to payee. Not less than three (3) days prior to the date on which a payee signs a transfer
agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than
fourteen (14) points, setting forth:

     1. the amounts and due dates of the structured settlement payments to be transferred;

     2. the aggregate amount of such payments;

     3. the discounted present value of the payments to be transferred, which shall be identified as the "calculation
of current value of the transferred structured settlement payments under federal standards for valuing annuities,"
and the amount of the applicable federal rate used in calculating such discounted present value;

     4. the gross advance amount;

     5. an itemized listing of all applicable transfer expenses, other than attorney's fees and related disbursements
payable in connection with the transferee's application for approval of the transfer, and the transferee's best
estimate of the amount of any such fees and disbursements;

     6. the net advance amount;

     7. the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the
transfer agreement by the payee; and

     8. a statement that the payee has the right to cancel the transfer agreement, without penalty or further
obligation, not later than the third business day after the date the agreement is signed by the payee.

(iii) Approval of transfers of structured settlement payment rights.

     1. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured
settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee
of structured settlement payment rights unless the transfer has been approved in advance in a final court order
based on express findings by such court that:

     A. the transfer is in the best interest of the payee, taking into account the welfare and support of the payee's
dependents;

     B. the payee has been advised in writing by the transferee to seek independent professional advice regarding
the transfer and has either received such advice or knowingly waived such advice in writing; and

     C. the transfer does not contravene any applicable statute or the order of any court or other government
authority.

(iv) Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement
payment rights under this subsection:

     1. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be
discharged and released from any and all liability for the transferred payments;

     2. The transferee shall be liable to the structured settlement obligor and the annuity issuer:

     A. if the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties
as a consequence of the transfer; and

     B. for any other liabilities or costs, including reasonable costs and attorney's fees, arising from compliance by
such parties with the order of the court or arising as a consequence of the transferee's failure to comply with this
subsection;

     3. Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic
payment between the payee and any transferee or assignee or between two (2) or more transferees or
assignees; and

     4. Any further transfer of structured settlement payment rights by the payee may be made only after
compliance with all of the requirements of this subsection.

(v) Procedure for approval of transfers.

     1. An application under this subsection for approval of a transfer of structured settlement payment rights
shall be made by the transferee and may be brought in the county in which the payee resides, in the county in
which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any
court which approved the structured settlement agreement.

     2. Not less than twenty (20) days prior to the scheduled hearing on any application for approval of a transfer
of structured settlement payment rights under paragraph (B)(iii) of this subsection, the transferee shall file with the
court and serve on all interested parties a notice of the proposed transfer and the application for its authorization,
including with such notice:

     A. a copy of the transferee's application;

     B. a copy of the transfer agreement;

     C. a copy of the disclosure statement required under paragraph (B)(ii) of this subsection;

     D. a listing of each of the payee's dependents, together with each dependent's age;

     E. notification that any interested party is entitled to support, oppose or otherwise respond to the transferee's
application, either in person or by counsel, by submitting written comments to the court or by participating in the
hearing; and

     F. notification of the time and place of the hearing and notification of the manner in which and the time by which
written responses to the application must be filed (which shall be not less than fifteen (15) days after service of the
transferee's notice) in order to be considered by the court.

(vi) General provisions-- construction.

     1. The provisions of this subsection may not be waived by any payee.

     2. Any transfer agreement entered into on or after the effective date of this subsection by a payee who
resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee
has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement
shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the
payee.

     3. No transfer of structured settlement payment rights shall extend to any payments that are life-contingent
unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has
agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor
for (i) periodically confirming the payee's survival, and (ii) giving the annuity issuer and the structured settlement
obligor prompt written notice in the event of the payee's death.

     4. No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty,
forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any
assignee based on any failure of such transfer to satisfy the conditions of this subsection.

     5. Nothing contained in this subsection shall be construed to authorize any transfer of structured settlement
payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into
prior to the effective date of this subsection is valid or invalid.

     6. Compliance with the requirements set forth in paragraph (B)(ii) of this subsection and fulfillment of the
conditions set forth in paragraph (B)(iii) of this subsection shall be solely the responsibility of the transferee in
any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the
annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with such
requirements or failure to fulfill such conditions.

(vii) Effective date. This subsection shall apply to any transfer of structured settlement payment rights under a
transfer agreement entered into on or after the thirtieth day after the date of enactment of this subsection;
provided however, that nothing contained herein shall imply that any transfer under a transfer agreement
reached prior to such date is either effective or ineffective; or

(14) A claim or right to receive benefits under a special needs trust as described in 42 U.S.C. section
1396p(d)(4), as amended from time to time.

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